BankThink

An emphasis on capital to the exclusion of all else is, at best, misleading and, at worst, harmful to the banking business model.

After failing to respond to customer demand and missing tectonic shifts in money transmission and online and mobile payments, banks have an opportunity in the emerging area of cryptographic money.

Notwithstanding recent media criticism, there is little doubt that these products offer a better alternative for unbanked and underbanked consumers who would otherwise use a cash-based system to manage their finances.

Breaking News This Morning ...Morgan Stanley Earnings: Morgan Stanley's profit rose 66% in the second quarter due largely to strong trading revenue. The firm also announced it is buying back $500 million worth of its own stock. Wall Street Journal, New York Times

After the Senate's confirmation of Richard Cordray as director of the Consumer Financial Protection Bureau, Massachusetts Sen. Elizabeth Warren applauded the decision at an event celebrating the bureau's second anniversary.

The new leverage ratio is a relatively modest proposal that can be easily addressed by the affected banks without material capital raises or changes in distribution policy.

The Senate's approval of Richard Cordray's nomination to lead the Consumer Financial Protection Bureau is likely to end the Republicans' push for a change to the bureau's structure.

Companies that provide on-demand, cross-account control and recommendations are best positioned to serve evolving consumer behavior. Banks that don’t get ahead of this shift could be relegated to the role of back-end infrastructure provider.

Breaking News This Morning ...BAC Earnings: Bank of America's profit rose 63% in the second quarter, due largely to strong trading revenue and cost-cutting. Wall Street Journal, New York Times, American Banker

An encompassing denominator and full disclosure requirements should assuage concerns that Basel fails to go far enough to cushion banks for unexpected losses.